Future Group’s Home Solutions to merge with Pantaloon Retail
Kishore Biyani’s Pantaloon Retail is merging Home Solutions Retail with itself. Home solutions three store formats and brands – Ezone, Collection I and Home Town, under which it retails different products, will merge into Pantaloon. Ezone specializes in consumer durables and electronics, Collection I specializes in high end furniture and furnishings and Home Town is a complete home improvement products retailer.
Pantaloon retail has invested close to Rs 170 crore in home solutions retail and holds approximately 67% stake, while the rest is held by others that include ICICI ventures and Kotak SAEF India Fund. The two collectively invested Rs 120 crore in Home solutions in 2006, and Rs 150 crore in the rights issue in 2009.
The decision to merge was taken last year to have better synergy and efficiency in the retail business, however the board approved the demerger of the consumer durables, home imporvement and furniture businesses from Home Solutions into Pantaloon now, according to a filing with the exchanges.
These other share holders will now be alloted preference shares and equity in lieu of their investment in Home Solutions, which would be close to Rs 500 crore according to analysts. The deal is subject to the company obtaining statuary approvals and share holders nod.
